Bright Water Advisory is an investment centric firm, focused on creating valuable personal planning that is connected to value-based investing. A few items we consider when working with you for a plan:
Looking for Value: We continue to seek out opportunities that are at least relatively attractive, if not absolutely attractive.
Rebalancing: As the market changes, it is simple to lighten up on assets that have appreciated to buy assets that have depreciated or vice versa. Actually implementing this plan can be easier said than done, as news tends to be wearisome and scary in the world when it is an attractive time to add to the stock portion.
Volatility: We want to match a portfolio’s likely volatility with your life, so that you are taking respectful risk.
Alignment: When pricing trends move, pieces of your investment must move as well.
We execute our client’s investment objectives using a data driven process. After we get to know you and better understand your objectives, one of the first steps is for us to suggest and confirm an allocation model among equities, bonds, and cash.
We leverage outside thinking, including Ned Davis Research (NDR.com) as a knowledge partner and Morningstar’s research database for quantitative, data driven, analysis. Our core concepts include:
Wealth Preservation: To mitigate the quiet erosive quality of inflation over time.
Wealth Enhancement: Dividend paying common stocks over the course of time are a core asset class that we continue to leverage.
Diversification: One of the basic, simplest tools for increasing the probabilities of investing success and reducing certain risks is to embrace diversification through a global view.
Implementation: We rely on individual common stocks, as well as exchange traded funds (ETFs), which are generally passive allocations to various asset classes to achieve diversification. These ETFs, particularly those from Vanguard, Schwab, State Street and iShares typically have a low or negligible cost structure.
For bonds — in this low yield environment, we prefer the diversification and liquidity through exchange traded funds (ETFs) and select mutual funds that target a specific maturity.
Alignment and non-linearity: Essentially, we want you to have enough cash to get through your short term, but encourage you to invest in growth for your long term (Morgan Hounsel).
